Custom Brokers: The Middlepeople

It's Career Day at your school today. Your class has invited a number of speakers to enlighten you on the possible careers that you may want to consider. Your teacher calls on the lawyer. Everyone gives him a round of applause. Next, the teacher calls on the doctor. Everyone gives him a big hand. Then, the teacher calls on the pilot. Everyone claps like there is no tomorrow. Finally, the teacher calls on the customs broker. Then, there is silence. Noise resumes as your classmates whisper, “a what?”

A customs broker “clears” goods through customs barriers for exporters and importers. Although most of us are not aware of what customs brokers do, the truth is that they have reached the highest professional degree that is recognized in the transportation industry. Customs brokers are also far from “broke” because they earn a very respectable income.

To understand more about what customs brokers do, let's consider a scenario. For example, you are importing an enormous amount of goods from Germany. You send a driver to the airport to pick up the goods. However, the Customs Service in your country does not want to release the goods to your driver. Like passengers, merchandise should also pass through Customs before it is allowed to enter your country. This is when you need the service of a customs broker. You have to hire a customs broker to clear the shipment and pass through Customs. The customs broker will fill out the necessary forms and determine if your merchandise is eligible to enter your country. He will also determine the duty rate or if your goods qualify for a Duty Free program. He or she will also issue a surety to the government that you will adhere to the demands of Customs, including those that may occur even after the transaction.

If you find this job to be interesting, you may want to consider a career in customs brokerage. If you live in the United States, you will need a Federal license issued jointly by the Customs and Border Protection and the Treasury Department. To obtain this license, you must pass an exam of eighty questions. This exam is given twice a year --- April and October. It is based on the Harmonized Tariff Schedule and the Code of Federal Regulations Part 19, which is about Customs Duties.